7-Eleven operators fined $150K for exploiting students

By Larissa Ham

April 27, 2011 — 3.40pm

Two former 7-Eleven operators have been fined $150,000 after exploiting six international students from Zimbabwe and India - one who was underpaid $40,000.

An investigation by the Fair Work Ombudsman found the operators, who owned and operated a store in Park Street, South Yarra and Moorabool Street, Geelong, deliberately falsified information to 7-Eleven head office about the number of hours worked and the students' rates of pay.

Toorak couple Hao Chen and Xue Jing were last Thursday fined $20,000 and $10,000 respectively in Melbourne Magistrates' Court, and their private company, Bosen Pty Ltd, a further $120,000. Both were charged with numerous breaches of workplace laws relating to underpayment and record keeping.

Magistrate Kate Hawkins ordered them to back-pay the students almost $90,000. The employees were underpaid amounts ranging from $1342 to $40,583.

Ms Hawkins said Chen was the "directing mind and will" of Bosen when it underpaid the workers, and that Jing was involved in the underpayment of two of the students.

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"The conduct was a systematic and significant exploitation of highly vulnerable workers," she said.

"The exploitation affected young international students, four (who were) teenagers at the time, who had only recently arrived in Australia."

The students, aged 18 to 26, were paid flat hourly rates of between $9 and $12, but were entitled to be paid more than double that for many of their shifts.

Some were illegally required to conduct several weeks of unpaid 'training' before starting their jobs at 7-Eleven.

Ms Hawkins said the penalty should "serve as a warning to others".

Fair Work Ombudsman executive director Michael Campbell said the community would not tolerate deliberate exploitation.

"International students and other foreign workers can be vulnerable because they are often not fully aware of their workplace rights in Australia, so we take instances of exploitation very seriously," he said.

The Fair Work Ombudsman has recently conducted a series of campaigns in industries employing many foreign workers, including horticulture, hospitality, cleaning and retail.

During an audit of 56 7-Eleven stores in Melbourne and Geelong last year, more than $32,000 was recovered for 62 underpaid workers.

Employers or employees seeking more information can visit www.fairwork.gov.au or phone the Fair Work Infoline on 13 13 94.